The Human Resources Challenge of Huawei —- Cultural clash
Background of Huawei
In 1987, Ren Zhengfei, then 44 years old, founded a telecom equipment-trading firm in Shenzhen, China, with startup capital of CNY 21,000. By the end of 2014, Huawei had 170,000 employees in more than 170 countries and regions, serving more than one-third of the world’s population, and leading the world in international patent applications. Over 30 years, it has grown to become the largest telecom company in the world. As well as that, it has operations and representative offices in more than 100 countries and serves over 1 billion users worldwide. Huawei’s success boils down to two fundamental elements: the changing technology environment and the creativity of its people, so we can realize that employees play a very important role in Huawei and the human resources management is very crucial to Huawei.
Human resources challenges of Huawei
According to Fang Lee Cooke (The International Journal of Human Resource Management, 2012, p.1845), there are several challenge to HRM in host countries and management responses of Huawei. First, because salaries are based on performance levels, inexperienced local new hires may have lower wages. Second, unlike local employment laws, as foreign companies, they need to comply more strictly with these laws than China. Third, how to strike a balance between employee development and cost-effective employee disbursement is sometimes a dilemma because HCN employees need training and development opportunities and then leave more famous Western multinationals. Fourth, multiculturalism and diversity management is another issue. Huawei may be one of the few Chinese companies that actively adopt the concept of multiculturalism and diversity management. Fifth, the lack of approval from local employees and their employers and the lack of acceptance of the corporate culture of Chinese enterprises are a double challenge to the issue of retention.
Fang Lee Cooke（国际人力资源管理杂志，2012年，p.1845）指出，人力资源管理面临着一些挑战，华为的管理层也作出了回应。首先，由于工资是基于绩效水平的，缺乏经验的本地新员工的工资可能更低。其次，与当地的就业法不同，作为外国公司，他们需要比中国更严格地遵守这些法律。第三，如何在员工发展和成本效益的员工支付之间取得平衡，有时是一个两难的选择，因为HCN员工需要培训和发展机会，然后离开更著名的西方跨国公司。第四，多元文化和多样性管理是另一个问题。华为可能是少数几个积极采用多元文化和多元化管理理念的中国公司之一。第五，缺乏当地员工及其雇主的认可，对中国企业的企业文化缺乏接受，是对留用问题的双重挑战。
The key challenge
Cultural clash is one of the key human resources aspects that affected Huawei. Huawei as a multinational company, the objective existence of the company’s internal cultural differences, is bound to cause cultural conflicts in the enterprise. As the process of global integration accelerates and the flow of human resources in multinational enterprises like Huawei continues to accelerate, this cultural friction will increase day by day and gradually begin to manifest itself in the internal management and external operation of transnational corporations, resulting in the loss of market opportunities for transnational corporations and the inefficiency of the organizational structure and make the implementation of the global strategy in trouble. Therefore, this essay will attempt to demonstrate how the Huawei can solve this problem and develop better for its brighter future using human resources management practices.